Customs busts luxury car smuggling in parts at Mongla
Photo: Courtesy
Customs Intelligence and Investigation Directorate (CIID) uncovered a novel smuggling tactic of importing four luxury vehicles disguised as “used car parts” by cutting them into only three to four large sections.
CIID confirmed the matter in a press release.
Although the importer declared the consignment arriving at Mongla Port as separate auto components, physical inspections revealed crucial and inseparable parts of the cars.
CIID officials said if these pieces are welded back together, workers can easily reconstruct the original chassis and characteristics of the vehicles.
The shipment contained a Range Rover Vogue, a BMW 650i, a Lexus LX570, and a Toyota Crown Athlete. The estimated Bangladeshi market value of these four vehicles ranges from Tk 4.50 crore to Tk 6.70 crore or even more.
Acting on a tip-off, CIID officials suspended the clearance process of the shipment. On 19 July, they conducted a 100 percent physical inventory of the container, receiving technical assistance from experts at the Bangladesh Road Transport Authority (BRTA) and the Khulna University of Engineering and Technology (KUET).
The inspection team analyzed stickers, labels, markings, and serial numbers across various parts, and utilized artificial intelligence (AI) to identify the vehicles.
Bill of Entry (B/E) for the shipment is C-6904, dated 20 April. It consisted of 164 packages containing 14 items with a total weight of around 10,220 kilograms. The importer of the shipment is Crown Automobile Services based in Dhaka, which brought the items to Mongla Port from Mahi Car Port in Japan.
The import listed various parts, including used doors, a 2,000 cc petrol engine with gear assembly, suspension shock absorbers, nose cuts, headlights, taillights, fenders, cabin, steering wheel, bumper, air cleaner box, rubber channels, differential, and axle assembly.
However, the examination instead revealed a front cut with wiring harness and sensors attached, a complete rear or tail cut, front and rear body cuts, and a roof cut panel assembly.
CIID’s investigation revealed that instead of general spare parts, the importer shipped the cars in a semi-knocked down (SKD) state after cutting them into several large pieces.
Among the four vehicles, a 2017 model Range Rover Vogue holds an estimated Bangladeshi market value of Tk 1.60 crore to Tk 1.85 crore. A 2010 model BMW 650i is valued around Tk 60 lakh to Tk 90 lakh. A 2016 model Lexus LX570 could cost from Tk 2 crore to more than Tk 3.50 crore. Meanwhile, the market value of the Toyota Crown Athlete is about Tk 30 lakh to Tk 45 lakh.
In contrast, the importer declared an invoice value of only $ 7,935 dollars for the entire shipment, with a customs assessable value of around Tk 9,93,547. Based on this under-declaration, the declared customs duty stood around Tk 6.07 lakh, with the total payable amount, including other fees, totaling around Tk 6.10 lakh.
According to the CIID, if these items are classified as complete motor vehicles in an SKD state under GRI Rule 2(a) rather than separate used parts, a significantly higher duty rate would apply.
Officials will determine the exact amount of revenue evasion once they calculate the value, engine capacity, age, depreciation, tariff value, or minimum value of the vehicles, alongside the applicable duty-taxes.
Customs investigators noted that under GRI Rule 2(a), if a fragmented shipment still retains the “essential character” of a complete product, authorities can classify and tax it as a finished item.
CIID observed that this import method violated relevant provisions of the Import Policy Order 2021-24, the Imports and Exports (Control) Act, 1950, and the Customs Act, 2023.
Due to the violation of the National Board of Revenue’s (NBR) 1997 directive, the intelligence agency sent a report with its assessment opinions to the Mongla Custom House recommending that they assess the shipment as SKD motor vehicles.
The agency has recommended a proper tax assessment and appropriate legal proceedings after reviewing the report.
